UNITED STATES OF AMERICA
                               Before the
                   SECURITIES AND EXCHANGE COMMISSION


     SECURITIES ACT OF 1933
     Release No.  7474 / November 7, 1997

     SECURITIES EXCHANGE ACT OF 1934
     Release No. 39310 / November 7, 1997

     ADMINISTRATIVE PROCEEDING
     File No. 3-9201

     
                 In the Matter of :
                                  : ORDER MAKING FINDINGS
     SKY SCIENTIFIC, INC., et al. : AND IMPOSING REMEDIAL
                                  : SANCTIONS BY DEFAULT
     

     Sky Scientific, Inc. (Sky) is in default under the Securities and Exchange
     Commission s (Commission) Rules of Practice, Rules 155 and 310, 17 C.F.R.
     sect. 201.155, .310 (1996), because it failed to appear at the hearing in the
     above cause, or to respond to the Order to Show Cause entered on October
     15, 1997.

     The Order Instituting Proceedings (OIP) alleges, in pertinent part, that
     Respondent Sky made materially false and misleading statements and
     omissions of fact to investors and prospective investors regarding:

     a.the existence and value of its assets, liabilities, mining business,
     properties, precious metals reserves, environmental compliance, revenues,
     and mining technology;

     b.the magnitude of Sky s income, expenses, net loss, sources and uses of
     capital and financial ability to continue its activities without material
     interruption;

     c.the value of preferred stock issued by Sky or its subsidiaries in
     connection with acquisition of assets;

     d.the proposed spin-off of a subsidiary called Sky Scientific Financial
     Services, Inc. (Financial Services), the operations and personnel of
     Financial Services, and the value of financial instruments purportedly
     issued by a Russian bank and purportedly owned by Financial Services;

     e.the nature of services purportedly being performed by consultants whom
     Sky was paying with common stock, and capital raising being conducted or
     orchestrated by others;

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     f.the identity of the authors and publishers of promotional brochures and
     the actual compensation paid by Sky to the authors and publishers; and

     g.the prospects and likelihood of success of Sky s business ventures and
     the risks of investing in Sky stock.

     The OIP further alleges, in pertinent part, that Sky made materially false
     filings with the Commission and falsified its accounting records.

     Accordingly, I find the allegations in the OIP, insofar as they pertain to
     Respondent Sky Scientific, Inc. are true.

     The Division requests a cease and desist order.

     I find that it is in the public interest to order Respondent Sky
     Scientific, Inc. to cease and desist from further violations of certain
     sections of the Securities Act of 1933 (Securities Act) and the Securities
     Exchange Act of 1934 (Exchange Act).

     ACCORDINGLY, it is:

     ORDERED pursuant to Section 8A of the Securities Act and Section 21C of the
     Exchange Act that Sky Scientific, Inc. cease and desist from committing or
     causing violations or any future violations of Sections 17(a)(1), 17(a)(2),
     and 17(a)(3) of the Securities Act and Sections 10(b), 13(a), and
     13(b)(2)(a) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-11,
     13a-13, and 13b2-1 thereunder.





                _______________________
     Robert G. Mahony
     Administrative Law Judge


















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